i am buying a new tract home in north carolina. i had the builder install $13,000 in upgrades. but i dont want to buy it now because...
1. the building inspection revealed hairline cracks in the foundation(three more have appeared since the report was done 30 days ago.
2. my mortgage lender raised the mortgage insurance by $40 per month and did not disclose until i discovered at closing table. then faxed a new good faith estimate to the closing for me to sign.
3. i walked away from the closing table and did not sign anything. i do not want the house now.
4. the house costs 237,000 and i've given $3,000 earnest money.
CAN I WALK AWAY FROM THIS DEAL?
please help
2007-05-25 22:12:50 · 6 answers · asked by Clay S 2 in Business & Finance ➔ Renting & Real Estate
I depends upon the terms and conditions of the contract you signed and applicable NC law. You shold contact an attorney.
2007-05-26 12:48:40 · answer #1 · answered by mcmufin 6 · 0⤊ 0⤋
Hairline cracks in the foundation matter which way they are going - horizontal versus vertical. Do Your Homework - find out the difference in research and contact a home inspector. You didn't say if you hired an inspector to look the house over - definitely worth the $300+ if you're even thinking of walking away.
Your Mortgage insurance is based on your qualifying information. Did you get pre-qualified before signing? Have you considered another mortgage lender? It's definitely a competitive market with lenders so it's worth it to pit lenders against each other.
Walking away is probably not in your best interest. Do your homework, seek out another lender immediately and negotiate.
Everything is negotiable in real estate...
2007-05-26 02:34:03 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Generally, hairline cracks in a foundation are not considered a structural fault. Without seeing these cracks, it's difficult to say, but concrete is a natural product, and will shrink slightly as it cures, sometimes resulting in 'hairline cracks'. You would need an engineer for further analysis.
Since your monetary issue is with your lender and not the home builder, you cannot expect the home builder to take any loss because of that.
Absent you being able to show significant defect in this concrete situation, you will be liable to the builder for what you have done. If you cannot prove significant defect, prepare to be sued.
2007-05-25 23:27:21 · answer #3 · answered by acermill 7 · 0⤊ 0⤋
Minor cracks in a foundation is common, I would get a reputable foundation co. out there to take a look and let you know what they think. I am sure you will find they say its ok. As far as the good faith estimate goes, its a 40 dollar difference, not exactly the end of the world. You could fight with them about it, but you will still be obligated to purchase because you can get a mortgage, you just do not want it. Sounds to me as if your just getting cold feet. Walk away if you wish, but expect to lose your 3k.
2007-05-26 03:32:03 · answer #4 · answered by frankie b 5 · 0⤊ 0⤋
Cracks in foundation already sounds like poor foundation work, would the builder rectify it? that is the point of a final
inspection.
you could probably walk on the basis of poor construction
but you may lose the 3000 dollars
2007-05-25 22:22:43 · answer #5 · answered by wise old sage 4 · 0⤊ 0⤋
3. i walked away from the closing table and did not sign anything. i do not want the house now.
Sounds like you already did.
2007-05-26 02:35:04 · answer #6 · answered by scottsnyderhomes 1 · 0⤊ 0⤋